I was born in early 2000’s and have not heard yet in any form or type. Also I wonder how much would it worth in today’s currency?
In: Economics
Bearer bonds are “payable to bearer upon demand”. So person A buys a $1000 bearer bond from an issuer (company, railroad, etc). Person A owes person B $1000 and gives them the bond as payment. Person B wants some guns/drugs/whatever and Person C sells them the whatever in exchange for the bond. This can go on for many transactions. In the end, Person X now has the bond and wants cash. They can take it to their bank and exchange it for cash and the bank gets the money back from the issuing company. The US government caught on to drug dealers moving large amounts of money with them in the 1980’s and made bearer bonds illegal to issue to stop this. People can still cash in the existing ones, though.
TL;DR – They are a way to make cash like transactions but much harder for police to trace. They can also have values much greater than currency so money can be more easily moved across national borders untraced, by carrying them as you travel.
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